ePolitix.com Stakeholders comment on the environmental measures set out in the 2007 Budget.

Stakeholder Response: Biffa

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Biffa's Peter Jones said: "The £8 hike in the landfill tax next year is clear recognition by the Treasury that sustainable low carbon emission technologies need to be made more bankable against current landfill cost profiles.

"This will act as a strong spur to the UK's waste and resource recovery sector to invest in solutions of the future for the future generations.

"This is an important milestone in the resource efficiency agenda which - in the long term - signals great opportunities for the environmental services sector, both in the UK and in terms of its capacity to meet burgeoning global demand."

Stakeholder Response: UK Timber Frame Association

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A spokesman said: "We are pleased to see a continued strong emphasis on supporting investment and innovation in environmentally sustainable businesses.

"By the government taking the UK economy from stable to sustainable, it has been possible for our industry to achieve rapid growth.

"Our interim market statistics will be published next month, but we expect to see that housing starts grew by about four per cent in 2006 in total, whereas timber frame achieved over eight per cent. With more than 50,000 timber frame units built in 2006 and our UK market share now over 20 per cent, this helps the UK save at least 150,000 tonnes of carbon.

"We also support the policy of using fiscal incentives to encourage interest in zero carbon new homes.

"The timber frame industry is already developing the technology and building practices that will allow housebuilders to meet the targets for low and zero carbon housing because we know that the use of timber frame makes it both commercially and technically feasible.

"Examples of such innovative homes are starting on site right now and will be on display in June at BRE's Offsite2007 exhibition. We think housebuilders and the homebuying public will love them.

"We support the government's recognition of the need for more flexible housing that can easily be modified to meet the needs of older people and changing family living requirements.

"Timber frame homes are the most adaptable type of homes - it's easy to remodel the living space, add rooms in the roof and make other changes.

"It's good to see financial support for families who want to make use of such benefits.

"Finally, we are delighted to see the government playing its part in the international initiative to prevent the destruction of the central African rainforest.

"Rainforests are of vital importance within the global climate system.

"Although worldwide deforestation of the rainforests remains a significant issue, it is not caused by the European construction industry which mainly uses softwood.

"UK timber frame uses 99 per cent European farmed softwood.

"The UKTFA is committed to promoting the responsible procurement of timber and to the policy of planting more trees than we harvest. In this way, Europe's forests will continue to act as huge carbon sinks and help tackle global warming."

Stakeholder Response: CPRE

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Neil Sinden, CPRE's policy director, said: "Alongside measures to reduce carbon emissions and an increase in the aggregates levy, the brownfield focus in the Budget enhances the chancellor’s green credentials.

"Extending tax incentives for brownfield development and reducing the duration of empty property relief from business rates will both help secure the more efficient use of urban land."

"But disappointingly the Budget fails to address the anomaly of VAT being charged at the full rate of 17.5 per cent on most building repairs and conversions, whereas new build is zero-rated. 

"Equalising VAT rates on new build and refurbishment would give a major incentive to efforts to promote urban regeneration."

"The government’s planning policies have been hugely successful in making better use of brownfield sites for new housing.

"It is vital that forthcoming reforms reinforce these Budget measures and strengthen the role of the planning system in regenerating brownfield sites, for housing as well as economic development."

Stakeholder Response: Woodland Trust

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Dr James Cooper from the Woodland Trust said: "There are some welcome developments in this Budget from an environmental standpoint, but the overall impression is that this did not live up to its billing as a green Budget.

"The commitment of £50m to the tackling of deforestation in Africa is a welcome recognition that this issue lies at the heart of tackling climate change whilst the announcement that Britain will go ahead with its first full-scale carbon capture and storage project is also good news.

"However, much of the environmental strand of the budget is characterised by caution rather than the bold approach and emphasis on public engagement which are necessary given the scale of the challenge we face as set out in the Treasury’s own Stern review.

"We would have liked to see further action on aviation, which is one of the fastest growing contributors to climate change.

"The chancellor should have also turned his attention to the important role of land use in both mitigation and adaptation to climate change following the encouraging debate on this subject started recently by the environment secretary.

"More generally, some recognition of the very real concern amongst charities over the impact of the Olympics on the National Lottery – the Heritage Lottery Fund stands to lose £90m as a consequence - would have been welcome. We are also troubled by the recommendation of the Lyons review, published today, that the ending of council tax relief for charities be examined."

Stakeholder Response: NHBC

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NHBC chief executive Imtiaz Farookhi said: "NHBC urges that consumer protection must be at the forefront of technological advances. Consumers must not be used as 'guinea pigs' for zero carbon technologies and systems that have not undergone thorough testing and accreditation.

"Asking consumers to pay for and maintain products and systems that are not reliable or fail to deliver the claimed benefits is not the way forward.

"Our task now is to ensure the implementation of the announcements in the Budget are for the benefit of consumers.

"NHBC's independent research institution - the NHBC Foundation - and its sister organisation, the National Centre for Excellence in Housing, will lead industry research with projects identifying solutions to environmental challenges.

"The Foundation has already begun to deliver a series of research findings of particular relevance to sustainability and the zero carbon agenda and this will continue through the year.

"The Centre will be working with a range of stakeholders to stimulate the upgrading and refurbishment of the existing housing stock in a sustainable manner.

"Through this work, we aim to help the government achieve its policy objectives and to rise to the challenge of the zero carbon agenda."

Stakeholder Response: Construction Products Association

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A spokesman said:"Despite all the expectations that the chancellor would deliver a budget to encourage environmental efficiency, the measures outlined today fall well short of what is needed to address the climate change issues and deliver a more sustainable future.

"There is an urgent need to make existing buildings more energy efficient, but the chancellor has missed a great opportunity to provide financial incentives to achieve this. 

"Whilst plans to exempt new zero-carbon homes costing up to £500,000 from stamp duty are to be welcomed, these are very modest measures given the scale of what has to be achieved with the overwhelming majority of existing homes – new homes only account for one per cent of total stock in any given year. 

"An incremental improvement to the energy efficiency of existing homes of one per cent each year would more than outweigh the environmental benefits produced by building all new housing to zero carbon. 

"The government must develop its strategy to make the existing building stock more energy efficient if it is serious about reducing carbon emissions and improving energy efficiency.

"There are a number of ways to help all householders improve energy efficiency, but this budget has done little to encourage any improvements. 

"The financial grants to help pensioners insulate their homes may be good for their quality of life, but this is a social policy, when what is needed is a strategy to reduce emissions from all the existing housing stock. 

"Turning to the issues in the budget aimed at improving business competitiveness, this Budget is unlikely to deliver significant wins for UK Plc – despite the cut in Corporation Tax to 28 per cent, but we welcome the measures in the Budget to assist industry competitiveness.

"We are pleased to see the government remains committed to reducing red tape through simplification of the tax system and, whilst we are particularly pleased that Corporation Tax has been cut, the rises in taxation for smaller firms mean the overall fiscal burden on businesses has not been significantly reduced by this budget.

"We wait to see the detailed proposals for simplification of the Climate Change Levy (CCL). The CCL does little to make companies more energy efficient and risks encouraging them to look elsewhere when it comes to making future investment decisions.

"The increase in the Aggregate Levy to £1.95 per tonne from 1 April 2008 will increase the cost of construction for infrastructure projects and major schemes like the London Olympics."